When Commodity Exports Suffer from Highly Variable Prices That Rise

When commodity exports suffer from highly variable prices that rise or fall significantly on a yearly basis, making it very difficult for developing countries to plan infrastructure projects, social services, or industrialization. This is a situation known as ___________________.

A) declining terms of trade
B) income volatility
C) income elasticity of demand
D) purchasing power parity
E) stop-and-go patterns

Correct Answer:

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